How fuel prices impact car insurance and driving costs
Rising fuel prices influence not only driving habits but also car insurance premiums. As fuel costs increase, drivers tend to reduce mileage, which can lower accident rates and potentially lead to cheaper insurance—especially with usage-based or pay-as-you-drive plans. However, financial stress may also increase insurance fraud, impacting overall premium rates. Higher fuel prices shift demand toward fuel-efficient or electric vehicles, affecting ownership costs, maintenance, and resale values. Businesses and car owners alike may feel the financial strain, prompting a move toward shared mobility. Staying informed and reviewing insurance options regularly can help drivers better manage costs.
Taiwan
Non-Life insurance premiums rise by 10.5%
Taiwan’s non-life insurance premiums grew by 10.5% in 2024, reaching TWD278.5 billion ($9.2 billion), according to AM Best. Motor insurance, especially voluntary motor, remained the largest contributor, despite slower new car sales. To support EV adoption, regulators introduced standardised EV motor policy terms in late 2024. AM Best’s eight rated non-life insurers saw similar premium growth, driven by gains in voluntary motor, travel, and commercial lines. The sector also recorded improved profitability in 2023 and 2024, following losses in 2022, helped by reserve releases and stronger underwriting.
USA
FSRA updates rules to address auto insurance fraud
Ontario’s financial regulator, FSRA, is introducing new rules to combat auto insurance fraud by requiring insurers to submit ongoing, detailed fraud-related data. This Fraud Reporting Service (FRS) Rule, approved by the Minister of Finance, aims to help FSRA track fraud trends, measure anti-fraud efforts, and reduce system costs. The initiative is expected to promote transparency, lower premiums, and enhance consumer protection. FSRA will support insurers during the transition to ensure compliance. Executive VP Glen Padassery said the move increases accountability and strengthens fraud prevention.
France
Allianz Direct acquires Eurofil
Allianz is acquiring French insurer Eurofil, positioning its subsidiary Allianz Direct as the third-largest direct insurer in France. The deal includes Eurofil’s full insurance portfolio and over 300 employees. Eurofil, a brand of Abeille Assurances, is a key player in France’s direct motor insurance market. Allianz Direct CEO Philipp Kroetz highlighted the strategic fit and shared commitment to digital growth and product excellence. The transaction is set to close by the end of 2025.
Italy
AXA ahead of Allianz for the acquisition of Prima Assicurazioni
AXA and Allianz are the leading contenders to acquire Milan-based insurtech Prima Assicurazioni in a deal valued at €1.5 billion. Reports suggest AXA is ahead, with exclusive talks expected soon. Prima is owned by co-founder Teodoro d'Ambrosio (48%), management, and investment firms including Blackstone, Goldman Sachs, and Carlyle. Interest from major insurers emerged in April 2025, following Prima’s strong 2024 performance. If successful, this would mark AXA’s second Italian acquisition in under a year, following its €423 million purchase of Nobis in August 2024.
